VED tax bands from April 2017

[motacyclist]

If anyone is considering changing their Cali then you need to do it fairly soon if you want to avoid the new VED tax bands. It's going to be quite a bit more expensive, thanks to the little present George Osborne has left us!

Say the Cali has emissions of 191 - 225g/km, then there will be a first year charge of £800. Then subsequently all cars pay £140 per year BUT those costing over £40,000 list price pay an additional £310 annual supplement for the next five years.

So will there be a big rush to buy expensive cars early next year? I bet there is and the dealers will be taking advantage! After that I think some car sales will drop considerably.

 

[GrannyJen]

If anyone is considering changing their Cali then you need to do it fairly soon if you want to avoid the new VED tax bands. It's going to be quite a bit more expensive, thanks to the little present George Osborne has left us!

Say the Cali has emissions of 191 - 225g/km, then there will be a first year charge of £800. Then subsequently all cars pay £140 per year BUT those costing over £40,000 list price pay an additional £310 annual supplement for the next five years.

So will there be a big rush to buy expensive cars early next year? I bet there is and the dealers will be taking advantage! After that I think some car sales will drop considerably.

I'm of the school of thought that say's "As there is nothing I can do about it then might as well dream up a contrarily positive counter opinion.

Which is: As cars over £40k are going to be hit hard the market will be so competitive that manufacturers will think up all sorts of incentive schemes such as "we will pay the over-40's surcharge for you".

Of course this will not affect VW as by then the latest emissions results will be "that as negative emissions are now being realised the government will have to pay us".....

 

[andyinluton]

As a cali is already some thing like £260 per year thats only an increase of about £200 a year.

I don't think an extra bit of tax totalling £1000 which is spread over 5 years is going to have any affect at all on peoples decisions on whether to buy what is now a £60k vehicle.

 

[motacyclist]

I don't think an extra bit of tax totalling £1000 which is spread over 5 years is going to have any affect at all on peoples decisions on whether to buy what is now a £60k vehicle.

No, agreed in the longer term; I guess I should have added sales "would drop considerably for a few months". But for anyone changing soon then it would be a bit of a downer if you missed it by a month or two. So it would make sense to bring any prospective purchase forward, which would affect sales in subsequent months.

 

[motacyclist]

Anyway, maybe it's having an positive effect on values of older Cali's, here's a 2014 one for £67k!

2014 Volkswagen California 2.0 BiTDi SE 180PS BMT 4MOTION DSG

Bargain or what?

 

[Stuart]

I've seen that one for sale too... Madness!

 

[WelshGas]

I've seen that one for sale too... Madness!

Unless of course it sells at close to that price?

 

[snowy55]

Has it been decided yet that Calis are included in this new tax system with them being "camper vans" on the V5?
All the articles I've seen refer to "cars"

 

[Bigted]

Cali's are considered 'cars' for the purposes of VED.

 

[Jonathan Duke]

Anyone know if it's the base price, for the particular model that's the £40k threshold?

My scenario..... I ordered a new Cali Beach last week.... Hopefully, it's delivered before the new VED rules apply..... However, if it isn't.... The list price of California Beach w/ 150 PS, 6- Speed Manual is £40,321.00

I'm currently assuming DVLA, will just use a database of some sort to retrieve the base cost (as I believe they do when working out benefit-in-kind for company cars etc.) This would mean, that even if get a dealer contribution deducted, there'll be no way of avoiding the VED surcharge, because of the £321.00 over £40k.

With this in-mind, I am tempted to either re-order with the 102 PS, 5-Speed - Which has a base price of £38,214 (don't really want to do that.)

Or, stipulate to my dealer, that my purchase is on condition of registration on or before 31st March. Or failing that, subject to a reimbursement of the additional VED total amount due over the first 5-Years.

I also assume, that a Cali Beach w/ 102 PS 5-Speed with £5,000 worth of extras fitted, will not be subject to the new VED surcharge. I'm pretty sure DVLA, won't have the time/resource to check everyones proof of purchase to establish how much they actually paid for their vehicle.

Anyway..... Just thought I post this message to see if there's anyone in a similar position to myself. That is, running a bit close to the 1st April 2017 for comfort.

 

[Erbster]

We have just ordered an ocean and expect it to be delivered in late March. We've decided that if it comes in March, we would wait till the end of the month to register it so that it would be on a 17 plate because this would help its residual. Until I saw this thread. Now I'm not so certain...


Time is an illusion, lunchtime doubly so.

 

[Stuart]

We have just ordered an ocean and expect it to be delivered in late March. We've decided that if it comes in March, we would wait till the end of the month to register it so that it would be on a 17 plate because this would help its residual. Until I saw this thread. Now I'm not so certain...


Time is an illusion, lunchtime doubly so.

Does the 17 plate not start at the beginning of March?

 

[Erbster]

Does the 17 plate not start at the beginning of March?

Blimey, you're right! Let's hope it's delivered before the end of March then!


Time is an illusion, lunchtime doubly so.

 

[WelshGas]

Has anyone actually asked the DVLA how the California will be treated? or is this all presumption.

 

[Jonathan Duke]

Has anyone actually asked the DVLA how the California will be treated? or is this all presumption.

There are other threads on this forum relating to type classification, and Californias are classified as Diesel Cars, for the purpose of VED class assignment.

Two factors will dictate VED amount.

1. Class (Diesel Car)
2. CO2 Emmissions

The VED "surcharge" will then either be applied, or not..... Over the first 5-Years, depending on the list price of the vehicle. Surcharge applied, if vehicle costs over £40,000.00

 

[WelshGas]

There are other threads on this forum relating to type classification, and Californias are classified as Diesel Cars, for the purpose of VED class assignment.

Two factors will dictate VED amount.

1. Class (Diesel Car)
2. CO2 Emmissions

The VED "surcharge" will then either be applied, or not..... Over the first 5-Years, depending on the list price of the vehicle. Surcharge applied, if vehicle costs over £40,000.00

That presumes that DVLA and VW keep the present classification of the California as M1 / Diesel Car Body Type - Motor Caravan/CamperVan and not change it to N1 / Private Light Goods Vehicle Body Type - Motor Caravan/CamperVan .

Land Rover have done this in the past to the Defender Station Wagon.

No change in Speed Limits etc:. And Commercial vehicles are not liable for the £40,000 VED surcharge.

 

[Jonathan Duke]

That presumes that DVLA and VW keep the present classification of the California as M1 / Diesel Car Body Type - Motor Caravan/CamperVan and not change it to N1 / Private Light Goods Vehicle Body Type - Motor Caravan/CamperVan .

Land Rover have done this in the past to the Defender Station Wagon.

No change in Speed Limits etc:. And Commercial vehicles are not liable for the £40,000 VED surcharge.

I doubt DVLA would have any enthusiasm to change the Cali classification from M1 to N1. So, it would be up to VW to convince DVLA, that the Cali is primarily used for the transportation of "Goods/N1" and not "Passengers/M1" - I think it would be optimistic to believe that this would be possible.

Land Rover, did bring N1 classification to some of their model variants, which are car derived vans (with no rear seats etc.)

There is another forum-thread on this topic, which includes a lot more detail on the classification rulings also.